Model Answers

Subject: Principles & Practices of Management Year: 2011-12 Subject Code: MB-101 Faculty: Dr.Vidhi Agrawal

Section A
1.Answer all 10 parts in 50-75 words .All parts carry equal marks: (a) What is management?. Ans. Management is the force that unifies human as well as non-human resources in the service of organisational goals. It is a process of getting results with and through people. Management in all business and organizational activities is the act of coordinating the efforts of people to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

(b) What are the functions of a manager? Ans. Managers are known by the work they do, the functions they perform. These functions may be broadly classified into five categories: Planning Planning is the process of deciding in advance what is to be done, when and where it is to be done, how it is to be done and by whom. Organising Organising is concerned with the arrangement of an organisations resources people, materials, technology and finance in order to achieve enterprise objectives. Staffing Staffing is the function of employing suitable persons for the enterprise. Leading and Influencing (Directing) Leading is stimulating people to be high performers. It includes motivating and communicating with employees, individually and in groups. Controlling Control is a process of monitoring performance and taking action to ensure desired results.

(c ) Define Supervision? Ans. Supervision means overseeing the subordinates at work at the factory level. The supervisor is a part of the management team and he holds the designation of first line managers. He is a person who has to perform many functions which helps in achieving productivity. Therefore, supervisor can be called as the only manager who has an important role at execution level. There are certain philosophers who call

supervisors as workers. There are yet some more philosophers who call them as managers. But actually he should be called as a manager or operative manager. His primary job is to manage the workers at operative level of management

(d) Explain the role of a management? Ans. Managers fill many roles as they carry out the management functions. These roles can be grouped into three categories: Interpersonal roles Figurehead-Representing the organisation in formal matters, serving as a symbol of the organisation Liaison-interacting with peers and people outside the organisation; developing external links Leader-Activities concerned with subordinates; motivating, staffing, communicating and directing Informational roles Monitor-Receiving and collecting information utilising the channels through which information comes Disseminator-Transmitting information with in the organization. Spokesman- Transmitting information to people outside the organization.

(e) What is span of control? Ans. Span of control refers to the number of immediate subordinate who report a manager. Different level of organization level is also called span of control.There can be narrow span of control and their can be wide span of control. The number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it to six, whereas routine, fixed work increases it to twenty or more.

(f) Define line functions in an organization Ans. Generally, a line function is one which is involved in or contributes directly to the main business activity of a firm. Line functions are those activities that give definition to the organization structure and which ensure that the product or service is produced and reaches the customer at a profit. In other words the departments or employees of a firm that perform the core activities and contribute to its business directly are called line function example manufacturing and marketing. Line has authority to give order to subordinates.

(g) Differentiate authority and responsibility. Ans. Authority Responsibility

It is the legal right of a person or a superior to command his subordinates.

It is the obligation of subordinate to perform the work assigned to him.

Authority is attached to the position of a superior in concern.

Responsibility arises out of superior-subordinate relationship in which subordinate agrees to carry out duty given to him.

Authority can be delegated by a superior to a subordinate

Responsibility cannot be shifted and is absolute

It flows from top to bottom.

It flows from bottom to top.

(h)Define matrix organization structure. Ans. Matrix organisation combines two structures functional departmentation and project structure.Functional department is a permanent feature of the matrix structure and retains authority for overall operation of the functional units.Project teams are created whenever specific projects require a high degree of technical skill and other resources for a temporary period. Project team form the horizontal chain and functional departments create a vertical chain of command. (i) Differntiate programmed and unprogrammed decisions. Ans. A programmed decision is applied to structured or routine problems. E.g. Lathe operators have specifications and rules that tell them whether the part they made is acceptable, has to be discarded, or should be reworked. This kind of decision is used for routine and repetitive work. Non-Programmed decisions are used for unstructured, novel and ill-defined situations of a nonrecurring nature. Most decisions are neither completely programmed nor completely non-programmed they are combination of both. Most Non-Programmed decisions are made by upper-level managers; this is because upper-level managers have to deal with unstructured problems. Problems at lower levels of the organization are often routine and well structured, requiring less decision discretion by mangers and nonmanagers. (j) What is planning premise?

Ans. Planning premises means systemic and logical estimate for the future factors affecting planning. According to Dr.G.R.Terry ,Planning premise are the assumptions providing a background against which the estimated events affecting the planning will take place. Koontz and ODonnel , A key part of planning is the establishment of clear planning premises. To assure co-ordination among all managers who make plans in organization , these premises should be used by all concern persons premises guides planning.

Section-B
2. (a) Discuss the nature of management discipline. Ans. The study and application of management techniques in managing the affairs of the organization have changed its nature, the nature of management can be explained and described as follows:Management is intangible-Management is intangible it cannot be seen.It is an unseen force. However its presence can be felt by the results of its efforts in the form of production,sales and profits. Management is goal-oriented-Management seeks to achieve goals.These goals may be economic or non-economic. In a business organisation primary goal is to produce and distribute goods with a view to earn profit. In a service organisation,the goal might be customer service. Management is universal- Management is an all pervasive activity. It is needed in all types of organizations e.g. university, club, army, government, business. Management is a social process- Acc. To Newman ,management is a social process because it deals with people. To make the best use of human efforts, managers have to create close cooperation among employees in an organization. Management is a group activity Management is concerned with getting things done through people .People join groups in order to achieve results collectively. Management is dynamic- Management is a dynamic and growth oriented function .It tries to visualise problem before they turn into emergencies and takes suitable steps. It tries to adapt itself to the environmental changes quickly. Management is Multi Disciplinary-To seek better results and improved performance in the field of management, concepts and ideas, generalisations,and principles of other disciplines are also used. Management is science,art and Profession-As management contains the feature of science,art and profession. (b) Explain Planning. Also discuss its process. Ans. Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. Urwick

The process of planning involves the following steps: 1. Analyzing Environment At the outset, the internal and external environment is analyzed in order to identify company's strengths and weaknesses (in internal environment) and opportunities and threats (existing int the external environment).

2. Establishing Objectives Or Goals objectives or goals are clearly defined in specific term along with priorities in all the key areas of operations. 3. Seeking Necessary Information All relevant facts and data are collected from internal and external sources. For example, availability of supplies, physical and human resources of the company, finances at disposal, relevant government policy, general economic conditions and relevant specific market situation.

4. Premising Or Establishing the Planning Premises In order to develop consistent and coordinated plans, it is necessary that planning is based upon carefully considered assumptions and predictions. Such assumptions and predictions are known as planning premises. 5. Identifying and Developing Alternative Courses of Action After establishing objectives or goals and taking other related steps, feasible alternative programmes or courses of action are searched out. Impossible or highly difficult propositions are left out. 6. Evaluating the Alternatives Probable consequences of each alternative course of action in terms of its pros and cons (e.g. costs, benefits, risks, etc) are assessed and than relative importance of each of them is found out by looking at their overall individual strengths and limitations . 7. Choosing the Most Appropriate Alternative Or Course of Action After weighing the pros and cons of each of the alternative courses of action and realizing their individual relative importance, the most appropriate alternative in the light of the overall consideration is selected to be followed.

8. Preparing the Derivative Plans Derivative plans involve short range, operating plans that are useful in day-to-day operation and provide a working basis for such operations. Such plans are developed in the form of schedules, budgets, programmes, procedures, methods, rules, policies etc. The derivative plans are prepared in different departments and their timing and sequence are also specified (c) Explain Fayols 14-Principle theory of management. Ans. Administrative Theory of Management- Contribution of Henry Fayol to management thought

Henry Fayol is said to be the father of management process or Administrative Management school. His contribution to the classifical theory is tremendous. He hadsufficient opportunity to reach personnel management opportunities and was able to analyze the management process which he laid down in his famous work General and industrial Administration published in French in 1916. Administrative Theory developed by Henri Fayol focuses on principles that can be used by managers to coordinate the internal activities of organisations. It was Henri Fayol who stated a set of 14 principles of management based on his practical experience as a manager. According to Fayol, these principles can be applied in all types, functions, levels, and sizes of organisations. For a long time, Fayols list was accepted as complete and comprehensive. A description of these principles is given below: 1. Division of work. Specialization of labour is necessary for organizational success. 2. Authority. The right to give orders must accompany responsibility. 3. Discipline. Obedience and respect help an organisation run smoothly. 4. Unity of command. Each employee should receive orders from only one superior. 5. Unity of direction. The efforts of everyone in the organisation should be coordinated and focused in the same direction. 6. Subordination of individual interests to the general interest. Resolving the tug of war between personal and organisational interests in favour of the organisation is one of managements greatest difficulties. 7. Remuneration. Employees should be paid fairly in accordance with their contribution. 8. Centralization. The relationship between centralization and decentralization is a matter of proportion; the optimum balance must be found for each organisation. 9. Scalar chain. Subordinates should observe the formal chain of command unless expressly authorized by their respective superiors to communicate with each other. 10. Order. Both material things and people should be in their proper places. 11. Equity. Fairness that results from a combination of kindliness and justice will lead to devoted and loyal service. 12. Stability and tenure of personnel. People need time to learn their jobs. 13. Initiative. One of the greatest satisfactions is formulating and carrying out a plan. 14. Esprit de corps. Harmonious effort among individuals is the key to organisational success.

(d) What is organization structure? Differentiate formal and informal organization structure?

Ans. An organization's structure is defined by its configuration and interrelationships of positions and departments. Organizational design is the creation or change of an organization's structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility. An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. Acc.to Koontz and ODonnell Organization is a structural relationship by which an enterprise is bound together and the framework in which individual effort is coordinated It is nothing but a chart of relationships. .In particular, the two basic forms of organizational structure are 1.mechanistic and 2.organic. The mechanistic structure The mechanistic structure, sometimes used synonymously with bureaucratic structure, is a management system based on a formal framework of authority that is carefully outlined and precisely followed. Mechanistic organizations are appropriate when the external environment is fairly stable. The biggest drawback to the mechanistic structure is its lack of flexibility, which may cause an organization to have trouble adjusting to change and coping with the unexpected. The organic structure The organic structure tends to work better in dynamic environments where managers need to react quickly to change. An organic structure is a management system founded on cooperation and knowledge-based authority. It is much less formal than a mechanistic organization, and much more flexible. Formal organization The establishment and the development of this type of the organization are very formal in the nature. Formal Organisation has its own rules and regulation. These rules must be followed by the members (employees and managers). A formal organisation has a system of co-ordination. It also has a system of authority. It has a clear superior-subordinate relationship. In a formal organisation, the objectives are specific and well-defined. All the members are given specific duties and responsibilities. Examples of formal organisation are:- a company, a school, a college, a bank, etc. Informal organization An informal organisation is a network of personal and social relationships. People working in a formal organisation meet and interact regularly. They work, travel, and eat together. Therefore, they become good friends and companions. There are many groups of friends in a formal organisation. These groups are called informal organisation. The Informal organization is born of itself. Whenever there is a formal organization, an informal organization is born.

Difference Between Formal And Informal Organization

Formal Organization
The formal Organization refers to the formal relationships of authority and subordinates withing a company The primary focus of the formal organization is the position of the employee/manager holds Formal Channels of Communication In formal Organization, each position has rules governing what can be done or what cannot be done. There are rewards and penalties for complying with these rules and performing duties as well. In a formal organisation, the duties, responsibilities, authority and accountability of each member is well-defined. The objectives or goals are well defined and specified It is Stable

Points of Distinction
Meaning

Informal Organization
Informal organization refers to the network of personal and social relations that is developed spontaneously between people associated with each other. The primary focus of the informal organization is the employee as an individual person. .Informal Channels of Communication In an informal organization, the conduct of individuals within organization is governed by norms that is social rules of behavior. In an informal organisation, there are no fixed duties, responsibilities, authority, accountability, etc. for the members. Objectives and goals are not specific and well defined It is not Stable

Focus

Channels of Communication Governing Rules

Duties and Responsibilities

Objectives or Goals Stable

The members of the formal organisation get financial benefits and perks like wages or salaries, bonus, travelling allowances, health insurance, etc.
n a formal organisation, there exist a superior-subordinate relationship.

Benefits For Members

The members of informal organisation get social and personal benefits like friend circle, community, groups, etc.
In an informal organisation, there is no such superior-subordinate relationship.

Superior-Subordinate Relationship

(e) What is motivation? Explain Herzbergs two factor theory of motivation? Ans. The success of an organisation depends on how effectively managers are able to motivate their subordinates. Motivation is a predisposition to act in a specific goal directed manner.Motivation is a goal directed behaviour characterised by the process of selecting & directing certain actions, among voluntary activities to achieve goals.Motives are expressions of a persons needs, hence they are personal & internal.Motivation refers to expenditure of effort toward a goal.

Frederick Herzberg offers framework for understanding the motivational implications of work environments. In his twofactor theory, Herzberg identifies two sets of factors that impact motivation in the workplace:

Hygiene factors include salary, job security, working conditions, organizational policies, and technical quality of supervision. Although these factors do not motivate employees, they can cause dissatisfaction if they are missing. Something as simple as adding music to the office place or implementing a nosmoking policy can make people less dissatisfied with these aspects of their work. However, these improvements in hygiene factors do not necessarily increase satisfaction.

Satisfiers or motivators include such things as responsibility, achievement, growth opportunities, and feelings of recognition, and are the key to job satisfaction and motivation. For example, managers can find out what people really do in their jobs and make improvements, thus increasing job satisfaction and performance.

Following Herzberg's twofactor theory, managers need to ensure that hygiene factors are adequate and then build satisfiers into jobs.

Section C
3. Planning should be a continuous process. Why? Also explain the functions of management. Ans. Planning should be a continuous process because planning is an ongoing process. Old plans have to be revised and new plans have to be prepared in case the environment undergoes a change. It shows the dynamic nature of planning. Planning is essential for the enterprise as a whole. Newman and others have drawn attention towards this feature of planning, without planning, an enterprise will soon disintegrate the pattern of its actions would be as random as that made by leaves scampering (running quickly in short steps) before an autumn wind and its employees would be as confused as ants in an upturned anthill. If there are no plans action will be a random activity in the organisation instead there will be chaos. So planning is a continuous process as the whole organization needs updated and latest plans with which the organization can grow. Managers are known by the work they do, the functions they perform. According to the functional approach, originated by Henry Fayol, in every organisation managers perform certain basic functions in order to achieve results. These functions may be broadly classified into five categories: Planning Planning is the process of making decisions about future. It is the process of determining enterprise objectives and selecting future courses of actions necessary for their accomplishment. It is the process of deciding in advance what is to be done, when and where it is to be done, how it is to be done and by whom.

Organising Organising is concerned with the arrangement of an organisations resources people, materials, technology and finance in order to achieve enterprise objectives. It involves decisions about the division of work, allocation of authority and responsibility and the coordination of tasks.. Staffing A managers greatest responsibility is to select, direct, develop and evaluate the people of the organisation. People are the source of all productive effort in organisations and hence, need to be nurtured carefully. Staffing is the function of employing suitable persons for the enterprise. It may be defined as an activity where people are recruited, selected, trained, developed, motivated and compensated for manning various positions. It includes not only the movement of individuals into an organisation, but also their movement through (promotion, job rotation, transfer) and out (termination, retirement) of the organisation. Staffing involves selection of the right man for the right job. Leading and Influencing (Directing) Leading is stimulating people to be high performers. It includes motivating and communicating with employees, individually and in groups. Influencing may be defined as guiding the activities of organisation members in appropriate directions. An appropriate direction is any direction that helps the organisation move toward goal attainment. The ultimate purpose of influencing is to enhance productivity. ControllingThe objective of controlling is to ensure that actions contribute to goal accomplishment. It helps in keeping the organisational activities on the right path and aligned with plans and goals. In controlling, performances are observed, measured and compared with what had been planned. If the measured performance is found wanting, the manager must find reasons and take corrective actions. If the performance is not found wanting, some planning decisions must be made, altering the original plans. If the controlling function is to be effective, it must be preceded by proper planning. Thus, controlling includes four things: (i) setting standards of performance, (ii) measuring actual performance (iii) comparing actual performance against the standard and (iv) taking corrective actions to ensure goal accomplishment.

3.Explain Taylors scientific management theory. Ans. It was F.W. Taylor, who recognized for the first time the need of a scientific approach to the task of managing on enterprise. Taylor was an industrial engineer. Principles of Scientific Management Science ,not Rule of Thumb- Acc. To this principle ,for solving problems and taking decisions, the manager should adopt a scientific attitude and use scientific thinking and methods.The approach of rule of thumb or a hit or miss approach should be replaced and instead ,the problem should be studied in all respects, the required data should be collected and analyzed for solving it. Harmony, not Discard- This indicates that all departments and workers are a part and parcel of an organization working together to achieve common goals . Therefore ,there should be complete harmony or coordination in their functioning .

Cooperation and not Individualism- According to this principle ,instead of encouraging individualism, the importance of cooperative group efforts should be recognised. Maximum Output and not Restricted Output- This states that production of goods should be done at the maximum capacity available in a production unit. The Development of each man to his greatest Efficiency and Prosperity- According to this principle, the efficiency level of the workers should be increased for the prosperity of individual workers and the organization. Techniques of Scientific Management Time Study -It is a technique which enables the manager to ascertain standard time taken for performing a specified job. Motion Study-In this study, movement of body and limbs required to perform a job are closely observed. In other words, it refers to the study of movement of an operator on machine involved in a particular task.The purpose of motion study is to eliminate useless motions and determine the best way of doing the job. StandardizationUnder Scientific Management ,standards have to be set in advance for the task, materials, work methods, quality, time and cost, working conditions etc. This helps in simplifying the process of production, reducing wasteful use of resources ,improving quality of work etc. Scientific Task Planning Scientific task is the amount of work which an average worker can perform during a day under normal working conditions(Called as fair days work). Management should decide in advance as to what work is done, how, when, where and by whom. Differential Piece Wage PlanThis technique of wage payment is based on efficiency of worker. The efficient workers are paid more wages than inefficient one. Mental Revolution-In order to get the desired results of scientific management, there should be a complete mental revolution on the part of the workers as well as the ,managers . Taylor propose to modify the functioning of foreman, by providing the scientific management technique Functional Foremanship Functional Foremanship-Taylor advocated functional foremanship for achieving ultimate specification. This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work. Therefore workers are to be supervised by specialist foreman. Taylor advocated appointment of 8 foremen, 4 at the planning level & other 4 at implementation level. The names & function of these specialist foremen are: Instruction card clerk concerned with tagging down of instructions according to which workers are required to perform their job Time & cost clerk is concerned with setting a time table for doing a job & specifying the material and labor cost involved in it.

Route clerk determines the route through which raw materials has to be passed. Shop Disciplinarians are concerned with making rules and regulations to ensure discipline in the organization. Gang boss makes the arrangement of workers, machines, tools etc. Speed boss concerned with maintaining the speed and to remove delays in the production process. Repair boss concerned with maintenance of machine, tools and equipments. Inspector is concerned with maintaining the quality of product. 4. Differntiate recruitment with selection. Also discuss selection process in special reference to an IT Company. Ans. Recruitment is the process of discovering potential candidates and of generating a pool of qualified applicants by encouraging qualified candidates to apply for actual or anticipated job vacancies within the organization. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. Selection is much more than just choosing the best candidate. It is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires. Recruitment Definition Process of generating a qualified pool of applicants for actual or anticipated job vacancies Positive process (increases the pool of available candidates) Objectives Making large numbers of qualified applicants aware of employment opportunities available in the organization Attracting the attention of qualified candidates Generating enough interest among Selection Process of gathering information on job applicants and making the hiring decision based on the information Negative process (eliminates candidates from the applicant pool) Predicting which job applicants will perform the job successfully, if hired To be able to discriminate (fairly) between job applicants likely to be successful or unsuccessful on the job

Methods

Company databases Job posting and binding Advertisements Referrals, and recommendations Executive search agencies

Application blanks Interviews Work samples, Employment/ psychometric tests, and Assessment centres

Campus recruitment

Steps in Selection ProcedureReception- A warm, friendly and courteous reception is extended to candidates with a view to create a favourable impression. Employment possibilities are also communicated honestly and clearly Screening Interview- The HR department tries to screen out the obvious misfits through this courtesy interview. A prescribed application form is given to candidates who are found to be suitable. Application blank- It is a printed form completed by job aspirants detailing their educational background, previous work history and certain personal data. Selection Tests- A test is a standardized, objective measure of a sample of behaviour. Selection tests are increasingly used by companies these days because they measure individual differences in a scientific way, leaving very little room for Individual bias.Example: Intelligence test, Aptitude test,Personality test,Projective test,Interest test etc. Selection Interview- Interview is an important source of information about job applicants. Several types of interviews are used , depending on the nature and importance of the position to be filled within an organisation. Medical Examination& Reference Checking- Medical evaluation and reference checking are routinely undertaken by leading companies these days to learn more about the candidates general health, social behaviour, interpersonal skills, punctuality and honesty etc. Hiring Decision After finalizing all the steps ,candidates are hired by the organization IT Company In case of IT company selection process must be designed with the utmost care and attention as IT industry is a service industry whose success is based on the competency of its knowledge workers. While selecting or hiring the new employees company must give due weightage to the kmowledge,technical skills and innovation and creativity skills of the candidates. 4.What are the sources of recruitment? What are the advantages of internal sources of recruitment . Ans. The Process of hiring human resources

Recruitment-It is the process of searching for prospective employees and encouraging them to apply for jobs in the organization. Stages in the Recruitment Process 1. Identify and Determine the requirements- Recruitment process begins with requisition for recruitment from any department of the company. 2. Locating and Developing the sources of required number and type of employees. 3. Identifying prospective employees with required characteristics 4. Developing and Employing the techniques to attract desired candidates 5. Attract and Stimulate as many candidates as possible to apply for job 6. Evaluate the effectiveness of recruitment process RECRUITMENT SOURCES: INTERNAL VERSUS EXTERNAL Recruitment sources are 'the locations where qualified individuals can be found'. One of the critical questions that a firm needs to address at the outset is whether to recruit internally or externally. External recruitment-It seeks applicants for positions from sources outside the company. External sources of recruitment have both merits and demerits. Merits of External Sources of Recruitment

The organization will have the benefit of new skills, new talents and new experiences, if people are hired from external sources. The management will be able to fulfill reservation requirements in favour of the disadvantaged sections of the society. Scope for resentment, heartburn and jealousy can be avoided by recruiting from outside.

Demerits of External sources of recruitment:

Better motivation and increased morale associated with promoting own employees re lost to the organization. External recruitment is costly. If recruitment and selection processes are not properly carried out, chances of right candidates being rejected and wrong applicants being selected occur. High training time is associated with external recruitment.

Internal Recruitment- It seeks applicants for positions from sources inside the company. Internal sources of recruitment have both merits and demerits. Merits of Internal Sources of Recruitment

a) FamiliarityThe organisation and its employees are familiar to each other. The organisation knows the ability and skills of the likely candidates since they are insiders b) Better utilisation of internal talentReliance on internal recruitment enables the enterprise to make the best use of the capabilities of its employees. c) EconomyThe cost of recruiting internal employees is minimal. The enterprise need not incur any expenditure on informing and inducing its employees to apply. d) Motivational valueInternal recruitment is a source of encouragement and motivation for employees. Demerits of Internal sources of Recruitment a) Restricted ChoiceInternal recruitment restricts the options and freedom for the enterprise in choosing the most suitable candidates for the vacancies. b) InbreedingIf the enterprise depends too much on internal recruitment, it means that the enterprise denies itself fresh talent and 'new blood' available outside. Existing employees, even if promoted or transferred may continue to work and be behave in the same habitual ways, without any dynamism. c) Absence of CompetitionIn the absence of competition from qualified candidates from outside employees are likely to expect automatic promotion by seniority and sure prospect. Thus they may lose the drive for proving their worth. d) ConflictThere may be chance of conflict and infighting among those employees who aspire for promotion to the available vacancies. Those who are not promoted are unhappy and their efficiency may decline.

5. Control is an important function of management without which nothing would work. Critically comment.Also discuss the types of control in management. Ans.. In controlling, performances are observed, measured and compared with what had been planned. If the measured performance is found wanting, the manager must find reasons and take corrective actions. If the performance is not found wanting, some planning decisions must be made, altering the original plans. If the controlling function is to be effective, it must be preceded by proper planning. A variety of tools and techniques has been used to help the managers control the activities in their organizationMethods of control and their frequency of use-Mainly there are nine methods of control. a.Constant control- It includes1. Self-Control-Self-Control means self-directed control. A person is given freedom to set his own targets, evaluate his own performance and take corrective measures as and when required.

2. Group Control-Work group are a source of control.Group defined norms exert greater influence in organizations than the norms that management may choose to set unilaterally and thrust on groups. b.Periodic Control-It includes3. Management Information System- In order to control the organisation properly the management needs accurate information. MIS collects data, processes it and provides it to the managers. MIS may be manual or computerised. With MIS, managers can delegate authority to subordinates without losing control. 4. Management Audits- Management Audit is an evaluation of the management as a whole. It critically examines the full management process, i.e. planning, organising, directing, and controlling. It finds out the efficiency of the management. 5.Budgets - A budget is a planning and controlling device. Budgetary control is a technique of managerial control through budgets. It is the essence of financial control. Budgetary control is done for all aspects of a business such as income, expenditure, production, capital and revenue. Budgetary control is done by the budget committee. 6.Financial Statements- All business organisations prepare Profit and Loss Account. It gives a summary of the income and expenses for a specified period. They also prepare Balance Sheet, which shows the financial position of the organisation at the end of the specified period. c. Occassional Controls-It Includes7.Special Reports-Special reports can be commissioned by an organization investigation when its normal control systems point to the need for detailed investigation or study of a particular operational aspect. 8.Personal observation- under this technique, the supervisor himself observes the employees and their work. This brings him in direct contact with the workers. So, many problems are solved during supervision. 9. Project Controls(PERT&CPM)-Various methods have been developed for controlling specific enterprise projects.The best example is the network analysis using the PERT & CPM tool. PERT- PERT is an acronym for Programme evaluation and review technique.It is a diagram showing the inter-relationships between the events and activities that comprise a project.It is a detailed ,easy to communicate means for determining current status of a project. CPM- The next step is to compute the critical path, that is, sequence of events which takes the longest time and which has zero (or the least) slack time. It is customary to identify several crucial paths in order of importance. 5.Explain the concept of Organizational Design.Also discuss its significance. Ans. Organizational design is the creation or change of an organization's structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.

Factors Affecting Organizational Design Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology. 1.Organizational size The larger an organization becomes, the more complicated its structure. When an organization is small such as a single retail store, a twoperson consulting firm, or a restaurant its structure can be simple. 2.Organization life cycle Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm. Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. 3.Strategy How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product (differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively (costleadership strategy). 4.Environment The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, socialcultural, legalpolitical, technological, and natural environment conditions. Environments are often described as either stable or dynamic. In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. In a dynamic environment, the customers' desires are continuously changingthe opposite of a stable environment. This condition is often thought of as turbulent. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits . 6. What is leadership? Explain its types?

Ans. Leadership is the process of influencing others towards the accomplishment of goals. It is the ability of a manager to induce subordinates to work with zeal and confidence (Koontz and ODonnell). In short, it is the activity of influencing people to strive willingly for group objectives.

6. There is a social responsibility of business that every organization should respond. Comment. Also explain what can an organization do to respond prove to be a socially responsive corporate citizen. Ans. Every business has the social responsibilities. Business is a social and economic institution which can not live in isolation. The establishment and development of business depends upon the contribution made by the society. This socioeconomic view says that managers' social responsibility go beyond making profit to include protecting g and improving societys welfare .Thus to prosper and succeed in any kind of business ,every business man has the responsibilities towards all the stakeholders. Every organization should respond to the needs of the society. Social responsibilities of the business owners or companies towards the General public, customers, investrors, financial community and employees are as followsResponsibility towards the General Public Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, vaccines, and steroids. Protecting the Environment. Using resources efficiently, minimizing pollution. Recycling. Reprocessing used materials for reuse. Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees. Responsibilities to CustomersThe Right to Be Safe. Safe operation of products, avoiding product liability. The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. The Right to Choose. Ability of consumers to choose the products and services they want. The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties. Responsibilities to Employees Workplace Safety. Monitored by Occupational Safety and Health Administration. Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.

Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older. Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender. Responsibilities to Shareholders/Investors Obligation to make profits for shareholders. Expectation of ethical and moral behavior. Investors protected by regulation by the Securities and Exchange Commission and state regulations. A fair and responsible return on the capital invested by them A part in profit or bonus payment scheme Political and economical security for investment through stable govt. law Knowledge about the working of a n enterprise. Fair amount of dividend or retained earnings. Voting rights